Resource company 'looking overseas for potential buyers'

Managing director Jason Elks said there would always be demand for coal and he wanted a mining lease approved within the next two years.

"You have nothing to sell until you have a mining lease, which will allow you to sell the coal," he said.

"We are at very early stages, we have multiple options, we are in talks with multiple parties and we've been looking overseas for potential buyers.

"People want to know that you've got a real project so the mining license is quite important but equally, given the commodity prices are so low, you don't also want to lock yourself into the bottom of the cycle pricing when thermal coal begins to rise.

"We're being reasonably cautious about that but we certainly would expect within the next 12-18 months to be towards a decision on an off-take partner and or, contracts of supply."

Professor John Rolfe from Central Queensland University said there were many challenges with a greenfield site.

"I think one of the unusual things that we are seeing is, it's the smaller companies that are making the play in the new developments and what's surprising is some of the bigger companies are being very cautious about expansion in coal, and some of them are looking to offload some of their coal assets," he said.

"I think if there are new entrants into the market they would have to always ask the question, is it better to try and buy an existing mine rather than opening a greenfield site?"